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09 02-12 mol results-q1-1

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  • 1. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31 , 2012 Financial Highlights: The First Quarter Ended June 30, 2012 1. Consolidated Financial Highlights ( from April 1, 2012 to June 30, 2012 ) (All financial information has been prepared in accordance with accounting principles generally accepted in Japan) (1) Operational Results (¥Million) (US$ Thousand) Q1/FY2012 Q1/FY2011 Q1/FY2012 Revenues 378,850 349,113 4,776,825 Operating income (loss) (503) (8,643) (6,342) Ordinary income (loss) (1,538) (8,356) (19,392) Net income (loss) (5,020) (8,047) (63,296) (¥) (US$ ) Net income (loss) per share (4.20) (6.73) (0.053) Diluted net income per share - - - (2) Financial Position (¥Million) (US$ Thousand) Q1/FY2012 FY2011 Q1/FY2012 Total Assets 1,988,564 1,946,161 25,073,307 Total Net Assets 698,541 717,909 8,807,729 Shareholders Equity / Total assets 31.0% 32.8% * Shareholders Equity is defined as follows. Shareholders Equity = Total Net Assets - ( Share subscription rights + Minority interests ) 2. Dividends (¥) Dividend per share Q1 Q2 Q3 Year end Total FY2011 ― 2.50 ― 2.50 5.00 FY2012 ― FY2012 (Forecast) ― ― ― ― ― * Forecast of dividends has yet to be determined. 3. Forecast of Consolidated Results for Fiscal Year ending March 31, 2013 (¥Million) (US$ Thousand) 1H/FY2012 FY2012 FY2012 Revenues 770,000 1,550,000 19,375,000 Operating income (loss) 1,000 16,000 200,000 Ordinary income (loss) (3,000) 10,000 125,000 Net income (loss) (2,000) 3,000 37,500 (¥) (US$ ) 1H/FY2012 FY2012 FY2012 Net income (loss) per share (1.67) 2.51 0.031 * Underlying Assumption of the Forecast for FY2012 The above forecast is made assuming the exchange rate and the bunker price for FY2012. Q2/FY2012 Exchange Rate 1US$=¥79.00 Bunker Price US$ 630/MT 2H/FY2012 Exchange Rate 1US$=¥80.00 Bunker Price US$ 630/MT ( Translation of foreign currencies ) The Japanese yen amounts for Q1/FY2012 have been translated into U.S. dollars using the prevailing exchange rate at June 30, 2012, which was ¥79.31 to U.S. $1.00, solely for the convenience of readers. (The convenience translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.) 1
  • 2. (Unaudited translation of kessan tanshin, provided for reference only) July 31 , 20124. Business Performance (Billions of Yen) Three months Year-on-year From Apr. 1 From Apr. 1 comparison to Jun. 30, 2011 to Jun. 30, 2012 (variance)Revenue 349.1 378.8 29.7/ 8.5%Operating income(loss) (8.6) (0.5) 8.1/ -%Ordinary income(loss) (8.3) (1.5) 6.8/ -%Net income(loss) (8.0) (5.0) 3.0/ -%Exchange rate (three-month ¥81.80/US$ ¥81.34/US$ ¥(0.46)/US$average)Bunker price (three-month average) US$625/MT US$695/MT US$70/MTDuring the first quarter of the fiscal year (FY) 2012 (April 1, 2012 to June 30, 2012), a sense of uneasetowards the sovereign debt crisis of southern European countries cast a shadow over the global economy,including the emerging countries, and this limited economic recovery to a gradual pace.In Europe, a crisis in the financial system was averted for the time being by the re-election held in Greece,which resulted in a victory by the parties supporting austere fiscal policies, and by the EU responses, whichincluded financial support measures for Spain. Nevertheless, austere fiscal policies and high unemploymentrates dampened capital investment and consumption, causing Europe to slip into recession.In the U.S., despite a lagging employment recovery, moderate growth continued against a backdrop of ahousing market recovery, favorable automobile sales, and energy price decline.In China, the pace of economic growth mildly weakened due to the impact of monetary tightening measures,implemented since last year for price control purposes, and weakening exports to Europe.In Japan, the automobile industry experienced strong domestic sales due to the government subsidyprogram for eco-friendly cars. In addition, exports were steady, particularly to the U.S., and expansion inrestoration demand related to the Great East Japan Earthquake brought about a gentle tone of economicrecovery.Looking at the maritime shipping market conditions, in the dry bulker market, the Capesize bulker markethas been stuck at bottom levels, mainly due to the continuous supply pressure exerted on the market bydeliveries of new vessels, and is yet to recover. In the tanker market, the crude oil tanker (VLCC) markethad proceeded firmly at the beginning of spring due to the impact of the dispersion of the procurementsources of oil consuming countries caused by the unstable conditions in the Middle East. From late April,however, it started to slide and ended at weak levels, because of the supply pressure of new vessels. As forcontainerships, cargo volume gradually recovered from the beginning of spring, and freight rate levelsproceeded firmly, lifted by the improved supply and demand environment.The average exchange rate against the U.S. dollar during the first quarter appreciated by ¥0.46 year on yearto ¥81.34.Furthermore, the average bunker price during the first quarter rose by US$70/MT to US$695/MT.As a result of the above, we recorded a loss in our business performance over the first quarter, despitemaking an improvement in our bottom line compared with the same period of the previous fiscal year. Thefollowing is a summary of business conditions including revenue and ordinary income/loss per businesssegment. 2
  • 3. (Unaudited translation of kessan tanshin, provided for reference only) July 31 , 2012Upper: Revenue, Lower: Segment Income(Loss)(Ordinary Income(Loss)) (Billions of Yen) Three months Year-on-year From Apr. 1 From Apr. 1 comparison to Jun. 30, 2011 to Jun. 30, 2012 (variance)Bulkships 170.8 189.1 18.3/ 10.8% (4.7) (2.3) 2.4/ -%Containerships 139.6 148.8 9.1/ 6.6% (5.4) (2.4) 2.9/ -%Ferry and Domestic Transport 11.4 12.8 1.3/ 11.6% (1.4) (0.2) 1.2/ -%Associated Businesses 30.3 31.8 1.4/ 4.7% 2.3 2.9 0.6/ 29.0%Others 3.5 3.6 0.0/ 2.4% 0.5 0.5 (0.0)/(0.8%)(Note) Revenue includes internal sales or transfers among segments.(A)Bulkships<Dry Bulkers>In the dry bulker market, the Capesize bulker market remained at low-freight-rate levels, althoughshipments from main loading ports in Brazil and Australia were generally firm throughout the first quarter,and market recovery did not eventuate on account of the continuing concern of a potential economicslowdown in the U.S., Europe and China, and the supply pressure caused by deliveries of new vessels. Inthe tramp market from Panamax on down, although the freight rates temporarily rose in mid-April on theback of comparatively firm grain transportation on Pacific Ocean routes and expectations of an increase incoal export volumes from the U.S., freight rates weakened afterwards in a similar way to the Capesizebulker market due to the impact of the supply pressure of new vessels and the slowdown in the Chineseeconomy.As a result of the above, despite stable profits from long-term contracts for carriers of iron ore, woodchips,steaming coal, etc., and efforts to reduce costs through efficient vessel operation, a loss was recorded in thefirst quarter due to a slowdown in the market.<Tankers/LNG Carriers>Regarding the tanker segment, the crude oil tanker (VLCC) market proceeded firmly until late April. Thiswas the result of increased demand for long-distance transportation due to the impact of the dispersion ofthe procurement sources of oil consuming countries such as China and India, which was caused by theunstable conditions in the Middle East, and the increase in vessel procurement by China on the spot market.After April, the crude oil tanker (VLCC) market began to deteriorate due to a renewed awareness of thesupply pressure of newly delivered vessels. This was triggered by the seasonal factor of a non-demandperiod that occurred when oil refineries in multiple Asian countries underwent periodic maintenance.In the product tanker market, despite the fundamental balance of supply and demand trending towardsimprovement, the market weakened due to a drop in naphtha cargo trade in the Asia region and fewerarbitrage-trading volumes as a result of the Europe and U.S. economic slowdown causing a perceivednotion that there is an oversupply of vessels.Although we responded to this situation by continuing to reduce fuel costs by enhancing slow steaming andimproving operation efficiency by setting up pools with other operators, a loss was recorded in the tankersegment for the first quarter.The LNG carrier segment proceeded firmly as a result of few new vessels and stable LNG demand in Japan.In terms of segment profit for the first quarter, stable revenue was secured from long-term transportcontracts, and we recorded the same level of revenue as the same period of the previous fiscal year.<Car Carriers>In the car carrier segment, shipments of completed cars generally recovered after dropping significantly in 3
  • 4. (Unaudited translation of kessan tanshin, provided for reference only) July 31 , 2012the previous fiscal year, particularly from Japan following the Great East Japan Earthquake. In addition,firm performance from cross trade and Asia-bound transport from Europe and the U.S. contributed towardsa significant year-on-year improvement in the ordi0ary income/loss.(B)ContainershipsRegarding containerships, amid the supply pressure caused by deliveries of new vessels, we strove torationalize our services while maintaining quality through measures such as expanding alliances. Cargotrade gradually recovered from the beginning of spring, the supply and demand environment improved, andfreight rate levels proceeded firmly. On the other hand, despite continuing to reduce fuel costs by enhancingslow steaming, the rise in bunker prices restricted improvement in the ordinary income/loss. Eventually,although year-on-year improvement was achieved, loss was recorded for the first quarter.(C)Ferry and Domestic TransportThe ferry business showed a large improvement in the ordinary income/loss compared with the same periodof the previous fiscal year. This was the result of the return to normal operations of the Oarai Ferry Terminalin Ibaraki Prefecture on the Hokkaido route in the current fiscal year. The terminal was damaged in theGreat East Japan Earthquake, making it unusable until early June in the previous fiscal year. The domestictransport business secured ordinary income/loss on par with the same period of the previous fiscal yearbecause the energy transportation-related field continued to yield strong results. For the ferry and domestictransport segment as a whole, a considerable year-on-year improvement was achieved in the ordinaryincome/loss.(D)Associated BusinessesIn the real estate business, while the rental office market failed to reach a full-fledged recovery, DaibiruCorporation, the core company in the MOL Group’s real estate business, maintained low vacancy rates,allowing us to sustain a stable performance. In the cruise ship business, although we have beenstrengthening sales activities in response to signs of a recovery in the cruise market since the previous fiscalyear, we have been unable as yet to secure a sufficient number of passengers. Consequently, despiteachieving year-on-year improvement, a loss was recorded. Apart from the cruise ship business, results fromother associated businesses were firm overall. As a result, segment income in the associated businessessegment as a whole increased year on year.(E)OthersOther businesses, which are mainly cost centers, include ship operations, ship management, financing, andshipbuilding. Overall revenue in this segment during the first quarter was on par with the same period of theprevious fiscal year.5. Financial PositionTotal assets for the quarter ended on June 30, 2012, was 1,988.5 billion yen, an increase of 42.4 billion yenfrom the end of the previous fiscal year. In spite of the investment securities reduced, the above mentionedincrease was materialized primarily due to an increase in vessels by delivery of newly completed vessels.Liabilities for the quarter ended on June 30, 2012, was 1,290.0 billion yen, increased by 61.7 billion yencompares to the end of the previous fiscal year. This increase was mainly attributable to long-term bankloans for the newly completed vessels’ delivery. Net assets for the quarter ended on June 30, 2012, was698.5 billion yen, a decrease of 19.3 billion yen from the end of the previous fiscal year, in consequence ofreduced retained earnings, unrealized holding gains on available-for-sale securities and increased unrealizedlosses on hedging derivatives. As a result of the above transactions, shareholder’s equity ratio dropped to31.0%, reduced 1.8% compares to the end of the previous fiscal year. 4
  • 5. (Unaudited translation of kessan tanshin, provided for reference only) July 31 , 20126. Outlook for FY2012For the first half of FY2012 (Billions of Yen) Initial outlook Latest outlook (When announced Comparison (variance) (When announced 1Q) on April 27, 2012)Revenue 790.0 770.0 (20.0)/(2.5%)Operating income(loss) (1.0) 1.0 2.0/-%Ordinary income(loss) (5.0) (3.0) 2.0/-%Net income(loss) (2.0) (2.0) 0.0/-%Exchange rate ¥82.00/US$ ¥79.00/US$ ¥(3.00)/US$Bunker price US$710/MT US$630/MT US$(80)/MT (Assumption for the (Assumption for 2Q) first half of FY2012)For FY2012 (Billions of Yen) Initial outlook Latest outlook (When announced Comparison (variance) (When announced 1Q) on April 27, 2012)Revenue 1,600.0 1,550.0 (50.0)/(3.1 %)Operating income(loss) 16.0 16.0 0.0/0.0%Ordinary income(loss) 10.0 10.0 0.0/0.0%Net income(loss) 3.0 3.0 0.0/0.0%Exchange rate ¥82.00/US$ ¥80.00/US$ ¥(2.00)/US$Bunker price US$710/MT US$630/MT US$(80)/MT (Assumption for the (Assumption for FY2012) second half of FY2012)For the second quarter and beyond, although there are causes for concern such as the strong yen, Europeancrisis, and delays in recovery of the dry bulker and the tanker markets, we expect improvement in freightrate levels in the containership business and bunker prices to remain lower than initial expectations.In consideration of these prospects, we project consolidated revenue for the first half of the fiscal yearending March 31, 2013, of ¥770.0 billion, consolidated operating income of ¥1.0 billion, consolidatedordinary loss of ¥3.0 billion and consolidated net loss of ¥2.0 billion. For FY2012, we project consolidatedrevenue of ¥1,550.0 billion, consolidated operating income of ¥16.0 billion, consolidated ordinary incomeof ¥10.0 billion, and consolidated net income of ¥3.0 billion.Please note that, as mentioned above, changes have been made to the outlook released on April 27, 2012.See “Announcement of Revision of FY2012 Outlook (1st Half) released today (July 31, 2012). 5
  • 6. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012 7. Consolidated Financial Statements (All financial information has been prepared in accordance with accounting principles generally accepted in Japan) (1) Consolidated Balance Sheets (¥Million) As of March 31, 2012 As of June 30, 2012 Assets Current assets Cash and deposits 50,864 44,821 Trade receivables 130,921 139,074 Marketable securities 10,023 10,026 Inventories 54,335 54,288 Deferred and prepaid expenses 53,744 58,485 Deferred tax assets 4,594 6,161 Other current assets 82,852 77,865 Allowance for doubtful accounts (401) (473) Total Current Assets 386,936 390,248 Fixed assets Tangible fixed assets Vessels 822,280 864,358 Buildings and structures 124,294 123,773 Equipments,mainly containers 9,210 9,040 Equipments and parts 3,597 3,814 Land 215,958 215,982 Vessels and other property under construction 116,724 109,083 Other tangible fixed assets 1,735 2,071 Total tangible fixed assets 1,293,802 1,328,125 Intangible fixed assets 16,193 20,541 Investments and other assets Investment securities 172,746 162,043 Long-term loans receivable 19,166 22,363 Prepaid expenses 20,479 20,479 Deferred tax assets 11,692 19,475 Other long-term assets 27,696 27,573 Allowance for doubtful accounts (2,551) (2,286) Total investments and other assets 249,228 249,649 Total fixed assets 1,559,225 1,598,316 Total assets 1,946,161 1,988,564 6
  • 7. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012                   (¥Million) As of March 31, 2012 As of June 30, 2012 Liabilities Current liabilities Trade payables 133,599 125,742 Short-term bonds 4,190 5,882 Short-term bank loans 101,012 102,113 Accrued income taxes 6,112 2,942 Advances received 19,808 25,807 Deferred tax liabilities 902 979 Allowance for provision for bonuses 3,928 2,798 Allowance for provision for directors bonuses 152 17 Allowance for provision for loss related to U.S. antitrust matter 151 145 Commercial paper 5,000 4,500 Other current liabilities 47,993 51,849 Total Current Liabilities 322,851 322,779 Fixed liabilities Bonds 187,030 185,753 Long-term bank loans 552,156 600,472 Lease obligations 19,011 20,109 Deferred tax liabilities 18,732 18,135 Allowance for employees severance and retirement benefits 13,766 13,619 Allowance for directors and corporate auditors retirement benefits 2,159 1,906 Allowance for provision for special repairs 14,058 15,199 Other fixed liabilities 98,484 112,047 Total Fixed Liabilities 905,401 967,243 Total Liabilities 1,228,252 1,290,023 Net Assets Owners equity Common stock 65,400 65,400 Capital surplus 44,486 44,514 Retained earnings 629,667 621,655 Treasury stock, at cost (7,151) (7,029) Total owners equity 732,402 724,541 Accumulated gains (losses) from valuation and translation adjustments Unrealized holding gains on available for-sale-securities, net of tax 16,888 11,452 Unrealized gains (losses) on hedging derivatives, net of tax (54,936) (68,718) Foreign currency translation adjustments (56,932) (49,829) Total accumulated losses from valuation and translation adjustments (94,980) (107,096) Share subscription rights 2,005 2,005 Minority interests 78,481 79,090 Total Net Assets 717,909 698,541 Total Liabilities and Total Net Assets 1,946,161 1,988,564 7
  • 8. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012(2) Consolidated Statements of Income (¥Million) Q1 / FY2011 Q1 / FY2012 (Apr.1 - Jun.30, 2011) (Apr.1 - Jun.30, 2012)Shipping and other operating revenues 349,113 378,850Shipping and other operating expenses 334,400 357,533Gross operating income 14,713 21,317Selling, general and administrative expenses 23,356 21,820Operating income (loss) (8,643) (503)Non-operating income: Interest income 106 340 Dividend income 1,378 1,543 Equity in earnings of unconsolidated subsidiaries and affiliated companies 1,072 ― Gain on sale of containers 1,026 1,888 Others 759 729 Total 4,343 4,501Non-operating expenses: Interest expense 2,646 3,176 Equity in losses of unconsolidated subsidiaries and affiliated companies ― 1,289 Exchange loss 406 411 Loss on valuation of derivatives 601 335 Others 403 323 Total 4,056 5,536Ordinary income (loss) (8,356) (1,538)Extraordinary profit: Gain on sale of fixed assets 2,440 301 Cancellation fee for chartered ships 62 861 Insurance income ― 966 Others 1,728 132 Total 4,230 2,261Extraordinary loss: Loss on sale of fixed assets 737 1,643 Loss on retirement of fixed assets 24 360 Loss on valuation of investment securities 181 4,321 Others 575 209 Total 1,518 6,534Income (loss) before income taxes and minority interests (5,643) (5,811)Income taxes 1,650 (1,446)Income (loss) before minority interests (7,293) (4,365)Minority interests in earnings of consolidated subsidiaries 753 655Net income (loss) (8,047) (5,020) 8
  • 9. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012(3) Consolidated Statements of Comprehensive Income (¥Million) Q1 / FY2011 Q1 / FY2012 (Apr.1 - Jun.30, 2011) (Apr.1 - Jun.30, 2012)Income (Loss) before minority interests (7,293) (4,365)Other comprehensive income Unrealized holding gains (losses) on available-for-sale securities, net of tax (3,017) (5,327) Unrealized gains (losses) on hedging derivatives, net of tax (8,296) (14,677) Foreign currency translation adjustments 4,486 6,703 Share of other comprehensive income of associates accounted for using equity method 1,584 1,576 Total (5,242) (11,725)Comprehensive income (12,536) (16,090) (Breakdown) Comprehensive income attributable to owners of the parent (13,265) (17,135) Comprehensive income attributable to minority interests 728 1,045 9
  • 10. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012(4) Consolidated statements of Cash flows (¥ Million) Q1 / FY2011 Q1 / FY2012 (Apr.1 - Jun.30, 2011) (Apr.1 - Jun.30, 2012)Cash flows from operating activities: Income (loss) before income taxes and minority interests (5,643) (5,811) Depreciation and amortization 20,625 22,566 Equity in (earnings) losses of affiliates (1,072) 1,289 Loss on valuation of investment securities 181 4,321 Various provisions (reversals) (2,268) (928) Interest and dividend income (1,485) (1,883) Interest expense 2,646 3,176 Loss (gain) on the sale of investment securities (226) 16 Loss (gain) on sale and retirement of vessels, property, plant and equipment (1,678) 1,702 Exchange (earning) loss,net 632 1,157 Changes in operating assets and liabilities ━ Trade receivables (2,432) (6,533) ━ Inventories (2,326) 245 ━ Trade payables (2,168) (9,057) Other,net (1,829) (2,595) Sub total 2,952 7,664 Cash received from interest and dividend 3,682 3,403 Cash paid for interest (2,988) (4,113) Cash paid for corporate income tax, resident tax and enterprise tax (26,832) (5,756) Net cash provided by (used in) operating activities (23,185) 1,198Cash flows from investing activities: Purchase of investment securities (552) (818) Proceeds from sale and redemption of investment securities 649 36 Payments for purchases of vessels and other tangible / intangible fixed assets (33,542) (63,803) Proceeds from sale of vessels and other tangible / intangible fixed assets 14,332 14,093 Net (increase) decrease in short-term loans receivable 208 529 Disbursements for loans receivable (734) (4,162) Collections of loans receivable 3,537 408 Other, net (1,502) (217) Net cash provided by (used in) investing activities (17,605) (53,934)Cash flows from financing activities: Net increase (decrease) in short-term bonds (93) ― Net increase (decrease) in short-term bank loans (6,242) (12,370) Net increase (decrease) in commercial paper (13,000) (500) Proceeds from long-term bank loans 63,184 72,647 Repayments of long-term bank loans (17,823) (19,072) Proceeds from issuance of bonds 30,000 ― Redemption of bonds (828) ― Purchase of treasury stock (12) (2) Sale of treasury stock 8 6 Cash dividends paid by the company (5,988) (2,995) Cash dividends paid to minority interests (380) (435) Other, net (198) (318) Net cash provided by (used in) financing activities 48,627 36,958Effect of exchange rate changes on cash and cash equivalents 857 1,706Net increase (decrease) in cash and cash equivalents 8,693 (14,070)Cash and cash equivalents at beginning of year 65,477 82,837Cash and cash equivalents at end of the Q1 of the year 74,170 68,766 10
  • 11. (Unaudited translation of ‘kessan tanshin’, provided for reference only) July 31, 2012 (5) Segment Information Business segment information: (¥Million) Segment report Q1 / FY2011 Ferry & Others Adjust-ment Consoli-dated Bulk- Container- Associated Total (Apr.1 - Jun.30, 2011) Domestic Sub Total *1 *2 *5 ships ships Businesses Transport Revenues 1.Revenues from customers, unconsolidated 170,555 139,183 11,430 26,197 347,366 1,747 349,113 - 349,113 subsidiaries and affiliated companies 2.Inter-segments 257 487 53 4,186 4,985 1,821 6,807 (6,807) - revenues Total Revenues 170,812 139,671 11,483 30,383 352,351 3,569 355,920 (6,807) 349,113 Segment income(loss) (4,743) (5,424) (1,465) 2,306 (9,326) 546 (8,779) 423 (8,356) (¥Million) Segment report Q1 / FY2012 Ferry & Others Adjust-ment Consoli-dated Bulk- Container- Associated Total (Apr.1 - Jun.30, 2012) Domestic Sub Total *1 *3 *5 ships ships Businesses Transport Revenues 1.Revenues from customers, unconsolidated 188,891 148,393 12,754 27,063 377,104 1,745 378,850 - 378,850 subsidiaries and affiliated companies 2.Inter-segments 283 428 58 4,743 5,513 1,909 7,423 (7,423) - revenues Total Revenues 189,175 148,822 12,813 31,807 382,618 3,655 386,273 (7,423) 378,850 Segment income (loss) (2,301) (2,470) (264) 2,974 (2,062) 542 (1,519) (18) (1,538) * 1. "Others" consist of the businesses which are not included in "segment report", such as vessels operation, vessels management, vessels chartering business, financial business and shipbuilding business. * 2. The adjustment of segment income (423 million yen) include the following element: -191 million yen of intersegment transaction elimination, 215 million yen of corporate profit which is unable to be distributed to each segment, 398 million yen of adjustment for management accounting. * 3. The adjustment of segment loss (-18 million yen) include the following element: -42 million yen of intersegment transaction elimination, -1,204 million yen of corporate loss which is unable to be distributed to each segment, 1,228 million yen of adjustment for management accounting. * 4. The method of allocating selling, general and administrative expenses was changed from the first quarter of FY2012 to reflect global expansion of our business locations on segment information appropriately. In case of calculating allocation of selling, general and administrative expenses of the first quarter of FY2011 by the modified method, segment loss would be decreased by 591 million yen in "Bulk-ships", 162 million yen in "Container-ships", 17 million yen in "Ferry & Domestic Transport". And segment income would be increased by 7 million yen in "Associated Business" and decreased by 8 million yen in "Others", 768 million yen in "Adjustment". * 5. The segment income (loss) is the ordinary income (loss), and the consolidated statements of income mentions the total figure after the adjustment. 11
  • 12. (Unaudited translation of kessan tanshin, provided for reference only) July 31, 2012 Supplement 1. Review of Quarterly Results FY2012 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Apr.~Jun.,2012 Jul.~Sep.,2012 Oct.~Dec.,2012 Jan.~Mar.,2013 Revenues [¥ Million] 378,850 Operating Income (loss) (503) Ordinary income (loss) (1,538) Income (loss) before income taxes (5,811) Net income (loss) (5,020) Net income ( loss) per share [¥] (4.20) Total assets [¥ Million] 1,988,564 Total net assets 698,541 FY2011 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Apr.~Jun.,2011 Jul.~Sep.,2011 Oct.~Dec.,2011 Jan.~Mar.,2012 Revenues [¥ Million] 349,113 368,232 356,326 361,549 Operating Income (loss) (8,643) (1,411) (8,321) (6,084) Ordinary income (loss) (8,356) (3,744) (6,569) (5,651) Income (loss) before income taxes (5,643) (11,940) (12,416) (3,517) Net income (loss) (8,047) (8,416) (8,678) (868) Net income (loss) per share [¥] (6.73) (7.04) (7.26) (0.73) Total assets [¥ Million] 1,897,714 1,911,808 1,890,477 1,946,161 Total net assets 719,521 697,365 674,922 717,909 12
  • 13. (Unaudited translation of kessan tanshin, provided for reference only) July 31,2012 2. Depreciation and Amortization (Million yen) Three months ended Three months ended June 30,2011 June 30,2012 Increase /Decrease FY2 Vessels 16,787  18,811  2,024 Others 3,838  3,755  (83) Total 20,625  22,566  1,941 3. Interest-bearing Debt (Million yen) As of Mar. 31,2012 As of June.30,2012 Increase /Decrease As of Sep. Bank loans 653,168  702,586  49,418 5 Bonds 191,221  191,636  415 2 Commercial paper 5,000  4,500  (500) Others 20,229  21,330  1,101 Total 869,619  920,053  50,434 7 4. Exchange Rates Three months ended Three months ended Change FY2 June 30,2011 June 30,2012 Average rates ¥81.80 ¥81.34 ¥0.46 (0.6%) appreciated ¥86. Term-end rates ¥80.73 ¥79.31 ¥1.42 (1.8%) appreciated ¥83. (Remark) "Average rates" are average of monthly corporate rates in each term, while "term-end rates" are TTM rates on the last day of each term. Overseas subsidiaries TTM on TTM on TTM Change December March 31, 2011 March 31, 2012 Term-end rates ¥83.15 ¥82.19 ¥0.96 (1.2%) appreciated ¥81. 5. Bunker Prices Three months ended Three months ended Increase /Decrease June 30,2011 June 30,2012 Consumption Prices US$625/MT US$695/MT US$70/MT 13
  • 14. (Unaudited translation of kessan tanshin, provided for reference only) July 31, 2012 6.Market Information (1) Containership Market (China Containerized Freight Index) Source : Shanghai Shipping Exchange CCFI W/C America Service CCFI E/C America Service CCFI Europe Service 2,100 1,900 1,700 1,500 1,300 1,100 900 700 1998.1.1=1,000 500 Apr Ju l Oct Apr Ju l Oct Apr Ju l Oct Apr Ju l Oct Apr F eb M ay Aug Nov M ay Aug Nov M ay M ar D ec F eb M ay Aug Nov F eb M ay Aug Nov M ar D ec M ar D ec F eb M ar D ec F eb M ar Ja n Ju n S ep Ja n Ju n S ep Ja n Ju n S ep Ja n Ju n S ep Ja n Ju n 2008 2009 2010 2011 2012 * CCFI reflects the freight rate trend for container exports from China only, which does not always match the overall trend for container exports from Asia. Therefore, this information is provided and updated only for reference purposes (2) Dry Bulk Market (Baltic Dry Index) Source : Tramp Data Service BDI (Baltic Dry Index) 12,000 10,844 10,000 BDI :January 1985 = 1,000 8,000 6,000 4,000 2,000 743 937 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 (Calender Year) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Maximum 1,734 1,566 1,666 4,609 5,519 4,678 4,336 10,543 10,844 3,941 3,865 1,928 1,170 Minimum 1,371 855 931 1,674 2,902 2,220 2,262 4,398 743 905 1,910 1,043 703 Average 1,606 1,215 1,144 2,634 4,521 3,380 3,188 7,090 6,347 2,613 2,763 1,428 955 (Jan.~Jun.) (3) VLCC Market Source : Drewry, RIM etc. WS VLCC spot rate(AG/East) 350 317 300 250 234 200 150 100 50 57 29 27 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 (Calender Year) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Maximum 168 108 112 149 317 190 120 234 216 54 97 63 65 Minimum 55 35 29 49 89 57 57 54 59 27 47 47 52 Average 110 66 50 93 149 101 90 79 120 40 70 53 59 (Jan.~May.) 14